Governator proposes tax on California oil drilling

As part of a package aimed to address California’s $11.2-billion budget deficit, Gov. Arnold Schwarzenegger on Thursday proposed a 9.9 percent tax per barrel on oil drilled in the state. The proposal, a flip-flop from the Governator’s opposition of a similar measure that failed two years ago, immediately garnered the ire of oil companies and Republicans and applause from Democrats and environmentalists.

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